STOCKHOLM – Swedish Fintech, Tink, has become Visa Inc.’s latest acquisition of an open banking platform, after Visa’s failed attempt at purchasing Plaid earlier this year.
Visa Inc. agreed to pay more than $2 billion for the startup whose digital services connect more than 3,400 banks and financial institutions in Europe. Through its network, Tink connects more than 250 million customers in Europe, giving institutions access to aggregated financial data, initiate payments, verify account ownership and build personal-finance management tools. The company, founded in 2012, has 400 employees.
The move provides the American financial corporation and card network a foothold into Europe’s increasingly open banking market. It also gives Visa the possibility to create a payment platform that bypasses its existing card-based payment network. For Tink, the acquisition increases the company credibility on a global scale, allowing it to expand its services internationally.
The European open bank framework has so far been a success. Many countries including Canada, are looking at adopting modified versions of the European model and discussions are currently taking place on multiple fronts.